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Total interest
Car Loan Monthly Payment Calculator
Vehicle financing decisions hinge on the monthly payment and the total amount of interest you will pay. This car loan calculator takes the vehicle price, down payment, trade-in, annual interest rate and term in years and returns a fixed monthly payment. Use it to test different down payments and loan lengths so the payment fits your budget without surprise interest costs later.
Please check your inputs — down payment plus trade-in can't exceed the vehicle price.
Monthly payment
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Total cost
How to Use the Car Loan Calculator
- Enter the vehicle price and any down payment or trade-in to get the amount financed.
- Input the annual interest rate and the loan term in years.
- Calculate monthly payment and total interest.
- Compare shorter versus longer terms to see the interest trade-off.
Enter the vehicle price, then any down payment and trade-in value. They are subtracted to get the amount financed. Add the yearly interest rate and the loan term in years. The result shows the monthly payment, the total interest and the total cost, which includes the down payment and trade-in. Run it again with a shorter or longer term to compare.
Car Loan Calculator Formula Explained
Amortizing Auto Loan Payment
Monthly payment M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is principal, r is the monthly rate and n is the number of months. Early payments are interest-heavy; later payments reduce principal faster.
The calculator finances the vehicle price minus the down payment and trade-in. It turns the yearly rate into a monthly rate (rate ÷ 100 ÷ 12) and the term into months (years × 12), then solves for the fixed monthly payment. Total interest is the sum of the payments minus the amount financed. The rate is the plain interest rate, not an APR, so fees, taxes and insurance are not included unless you add them to the price.
Car Loan Calculator Example Calculation
Financing a €25,000 car with €5,000 down leaves €20,000 to borrow. At a 5.5% annual interest rate, a 4-year loan has a higher monthly payment than a 5-year loan, but it costs less interest.
Worked example: vehicle price 25,000, down payment 5,000, no trade-in, 5.5% interest rate. Over 4 years the monthly payment is €465.13, total interest is €2,326.22 and total cost is €27,326.22. Over 5 years the payment drops to €382.02, but interest rises to €2,921.39 and total cost to €27,921.39.
When to use this tool
Use this before signing a hire-purchase or auto loan so you can compare dealers, banks and credit unions on monthly cost and total interest—not just the headline rate.
Key Features & Benefits of This Car Loan Calculator
- Down payment and trade-in — both are subtracted from the vehicle price, so the monthly payment is based on the amount you actually finance.
- Payment, interest and total cost — see the monthly payment, the total interest and the total cost, which includes your down payment and trade-in.
- Compare loan lengths — run 4 and 5 years side by side: in the example the payment falls from €465.13 to €382.02, but interest rises from €2,326.22 to €2,921.39.
- Instant, free and private — runs entirely in your browser, no sign-up, nothing stored.
Good to know
Lenders usually quote an APR and the total amount payable. Compare those figures across offers, not only the monthly instalment, before you sign.
Car Loan Calculator — FAQs
Should I take the longest term for a lower payment?
Longer terms reduce the monthly figure but increase total interest and the risk of owing more than the car is worth. Match term to how long you plan to keep the vehicle.
Are dealer rates the same as bank rates?
Not always. Shopping credit unions or banks alongside dealer financing can reveal meaningful APR differences.
Does the calculator include tax and fees?
Only if you add them into the amount financed. Sales tax, registration and documentation fees are often rolled into the loan at the dealership.
Does APR include fees, not just interest?
APR usually includes mandatory fees alongside interest, so it is a better like-for-like comparison than the plain interest rate alone. This calculator uses the plain interest rate, so enter the rate without fees.
Sources and review
Sources last checked: . These sources give the background for this calculator. They are general information, not financial advice.
- Your Europe: Consumer credits and loans: the standard information form lenders must give you, the annual percentage rate (APR), the 14-day right to withdraw and early repayment.